Fomento Económico Mexicano, S.A.B. de C.V. (FMX) AI Stock Analysis

Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) operates as a major Coca-Cola bottler and distributor across several Latin American countries, including Mexico, Brazil, Colombia, and Argentina. The company also operates an extensive network of small-box retail convenience stores under the OXXO brand throughout Mexico, Colombia, Peru, Chile, and Brazil. Additionally, FEMSA runs OXXO GAS service stations in Mexico and manages drugstore chains such as Cruz Verde, Fybeca, and SanaSana across Chile, Colombia, Ecuador, and Mexico. Its operations also encompass refrigeration manufacturing, food processing equipment, and logistics services across the Americas.

FEMSA's annual revenue rose from $505.46B in FY2021 to $702.69B in FY2023 before dropping to $37.49B in FY2024, followed by a 24.4% rebound to $46.65B in FY2025. Net income was $1.08B in FY2025 with a net margin of 2.3%, down from $28.50B in FY2021. For the trailing twelve months ending June 30, 2026, revenue stood at $872.84B, with an operating margin of 8.0% and EPS of $14.08. In the quarter ended June 30, 2026, quarterly revenue grew 9.3% year-over-year, while quarterly earnings surged 107.5%.

As of June 30, 2026, FEMSA held $116.55B in cash and short-term investments against $14.47B in total debt, resulting in a net cash position of $102.08B. The company had a current ratio of 1.14 and a debt-to-equity ratio of 1.17 on shareholders' equity of $12.39B. In FY2025, operating cash flow reached $3.94B, supporting $2.33B in capital expenditures and generating $1.61B in free cash flow. Capital returns in FY2025 included $2.77B in dividends paid and $685.8M in share buybacks.

FMX closed at $126.46 on October 16, 2026, up 41.4% over the prior year compared to a 16.8% return for the S&P 500 (SPY). Over a 5-year period, FMX returned 85.7% against 83.0% for SPY. The company trades at a trailing P/E of 9.0x, below the 18.6x median of its US-listed Consumer Defensive peers. However, its forward P/E stands at 89.3x compared to the peer median of 14.3x. Its EV-to-EBITDA is 9.9x versus the peer median of 11.7x.

FEMSA pays a quarterly dividend with an annualized forward dividend of $4.57 per share, yielding 3.61%. The dividend has been paid for 12 consecutive years and achieved a 5-year annualized dividend growth rate of 36.3%. Its payout ratio is 143.4%, and the most recent ex-dividend date was October 14, 2026.

Wall Street analysts cover FMX with 5 Strong Buy, 2 Buy, 7 Hold, and 1 Sell ratings. The mean price target of $135.64 indicates a 7.3% upside compared to the last close of $126.46. For the fiscal year ending December 31, 2026, analysts estimate EPS of $5.63 and revenue of $903.52B. For FY2027, 6 analysts project EPS of $5.21 and revenue of $972.35B. FEMSA beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of Fomento Económico Mexicano, S.A.B. de C.V. (FMX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: FMX income statement, FMX key metrics, FMX analyst forecast, FMX chart. See the FMX stock overview for the latest quote and news.